Australia raises minimum wages by 3.5% as inflation eases
SYDNEY: Australia's independent wage-setting body on Tuesday (June 3) raised the national minimum wage by 3.5 per cent effective July 1, a real wage increase for about 2.6 million workers on the lowest pay as inflationary pressures ease in the economy.
The minimum rate will rise to A$24.94 (US$16.19) per hour, resulting in an extra A$1,670 in a year for full-time employees, according to the Fair Work Commission's (FWC) annual review.
Headline consumer price inflation held at 2.4 per cent in the first quarter, comfortably within the Reserve Bank of Australia's target band of two to three per cent and having come down from the 7.8 per cent peak in late 2022.
FWC President Adam Hatcher said the decision could help many workers to recoup the loss of their real income over the last few years due to high living costs.
"If this opportunity is not taken in this annual wage review, a loss in the real value of wages which has occurred will become permanently embedded... and a reduction of living standards for the lowest paid in the community will thereby be entrenched," Hatcher said.
Last year, the FWC increased minimum wages by 3.75 per cent but that was largely in line with inflation.
The Australian Council of Trade Unions (ACTU) described the wage increase as "a great outcome" for employees on minimum wages, who it said suffered the most when inflation soared after the COVID-19 pandemic.
"Our lowest-paid workers are getting ahead again," ACTU Secretary Sally McManus told reporters.
The Reserve Bank of Australia cut interest rates to a two-year low last month as cooling inflation at home offered scope to counter rising global trade risks, and left the door open to further easing in the months ahead.
At the same time, the labour market has remained surprisingly resilient, with the jobless rate hovering at 4.1 per cent for over a year now. Employment gains have been driven by a surge in public sector jobs, with still tepid wage growth suggesting few risks of a damaging wage-price spiral. - Reuters
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
3 hours ago
- The Sun
HSBC Premier goes ‘beyond just wealth'
KUALA LUMPUR: HSBC Malaysia has rolled out a redefined HSBC Premier proposition designed to capture the country's fast-growing affluent and high-net-worth segment, which is projected to transform Malaysia's financial landscape over the next decade. Anchored on four strategic pillars (wealth, health, travel and international) the new premier offering blends traditional financial services with health, lifestyle and global connectivity in what the bank says is a blueprint for the next era of affluent banking. HSBC international wealth and premier banking Asia head Kai Zhang framed the launch as both a milestone for Malaysia and a stepping stone for HSBC's wider regional ambitions. 'Today is more than a proposition launch. It's a milestone in how we serve the evolving wealth and international banking needs of our customers in Malaysia, and a signal of our broader ambition in the region,' Zhang said. 'We estimate that the percentage of adults in Malaysia with at least US$250,000 (RM1.18 million) in financial wealth will double over the course of this decade. 'But it's not just about growth, it's about how wealth is changing. 'Customers are seeking diversification, investing for the long term, and integrating wealth decisions into broader life goals.' Data from GlobalData suggests Malaysia's affluent market, including high-net-worth individuals, will grow at a compound annual growth rate of 5.4% between 2025 and 2029, with liquid assets expected to reach nearly US$350 billion in four years. HSBC Malaysia international wealth and premier banking country head Linda Yip, said this growth is also altering what customers expect from their banks. 'Affluent customers now seek holistic solutions that help them accelerate their wealth while placing their health and wellbeing at the forefront,' she said. 'Achieving this balance allows them to grow, protect, enjoy and preserve their wealth for generations.' Yip said the bank's goal is not only to deepen relationships with existing customers but to attract new ones to its platform and hope Malaysians, especially the affluent segment, will feel that this is the bank and the service they want to get. 'Our aspiration is to go higher than what we have now, and we expect the second half of 2025 to be very robust for us.' According to HSBC's Quality of Life research, 78% of affluent Malaysians keep most of their portfolios in fixed income bonds and equities, while over half (51%) are saving for leisure and travel and 48% prioritise health for a better quality of life. Yip said HSBC Premier stands out by going 'beyond just wealth', combining financial planning, lifestyle experiences and borderless banking. This includes seamless international services for families with children studying abroad, ensuring access to banking support across HSBC's global network, giving parents peace of mind.
The Star
4 hours ago
- The Star
Russia starts restricting some calls on Telegram and WhatsApp, Interfax says
MOSCOW (Reuters) -Russian authorities are taking measures to restrict some calls on Telegram and WhatsApp, the messaging app owned by Meta Platforms, Russia's Interfax news agency cited Russia's communications regulator Roskomnadzor as saying on Wednesday. Meta and Telegram did not immediately respond to requests for comment. President Vladimir Putin last month signed a law authorizing the development of a state-backed messaging app integrated with government services, as Russia strives to reduce its dependence on platforms such as WhatsApp and Telegram. Russia has long sought to establish what it calls digital sovereignty by promoting home-grown services. Its push to replace foreign tech platforms became more urgent as some Western companies pulled out of the Russian market after Moscow launched full-scale war in Ukraine. "In order to counteract are being taken to partially restrict calls on these foreign messengers," Interfax quoted Roskomnadzor as saying. "No other restrictions have been imposed on their functionality." Roskomnadzor said that the owners of both Telegram and WhatsApp had ignored repeated requests to take measures to stop their platforms being used for activities such as extortion and terrorism. (Reporting by Reuters; Writing by Anastasia Teterevleva and Alexander Marrow; Editing by Mark Trevelyan/Guy Faulconbridge)
The Star
4 hours ago
- The Star
India cenbank committee recommends AI framework for finance sector
MUMBAI (Reuters) -A Reserve Bank of India committee has recommended a framework for developing AI capabilities for the country's financial sector, while safeguarding it against associated risks, according to a report released on Wednesday. The committee has recommended setting up a digital infrastructure to help build indigenous AI models and a multi-stakeholder standing committee to evaluate risks and opportunities. It also suggested building a fund to incentivise the development of homegrown AI models tailored for the needs of India's financial services sector. "The report envisions a financial ecosystem where encouraging innovation is in harmony, and not at odds, with mitigation of risk," the RBI said in a statement. The report contains 26 recommendations under six categories including infrastructure, capacity, policy, governance, protection and assurance. Other key recommendations by the eight-member committee headed by Pushpak Bhattacharyya, a computer scientist at IIT Bombay, include issuing of an enabling framework to integrate AI with existing digital public platforms such as instant payment system UPI, and designing audit frameworks. The central bank had set up the committee in December to develop a Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREEAI) for the finance sector. "The challenge with regulating AI is in striking the right balance, making sure that society stands to gain from what this technology has to offer, while mitigating its risks," according to the report. (Reporting by Ashwin Manikandan; Editing by Shinjini Ganguli)
